Universal Service Credit a. In accordance with MPSERS requirements of either Basic or MIP, each retiring employee has the option of using accumulated sick leave time to purchase Universal Service Credits up to the maximum allowed at the accumulated leave time payout rate. The retiring employee shall initiate the tax deferred purchase process with MPSERS. Upon approval of the application by MPSERS, and pursuant to IRS guidelines, the District will pay the accumulated leave money at the time the retiring employee receives his or her last pay. The amount may be set up as a payroll deduction and forwarded to MPSERS to facilitate this purchase.
Universal Service Credit. Whenever a bargaining unit member who was hired prior to September 1, 2007, and has at least ten (10) years of service (not including purchased service, service grants or time spent on voluntary unpaid leave) as of January 1, 2008, terminates his/her employment and, at the same time, is eligible to collect an annuity from the MEA/MESSA/MEA-Financial Services Staff Retirement Plan and Trust, that bargaining unit member shall be credited with additional years of Universal Service Credit as follows: Years of Employment Completed with MEA, MESSA, MEA-FINANCIAL SERVICES and/or MEDNA Year(s) of Universal Service Credit At least 15 but less than 20 1 25 or more 3 Whenever a bargaining unit member who was hired prior to September 1, 2007, and has less than ten (10) years of service (not including purchased service, service grants or time spent on voluntary unpaid leave) as of January 1, 2008, terminates his/her employment and, at the same time, is eligible to collect an annuity from the MEA/MESSA/MEA- Financial Services Staff Retirement Plan and Trust, that bargaining unit member shall be credited with one (1) year of universal service credit. All service credit grants provided above are subject to eligibility requirements of the MEA/MESSA/MEA-Financial Services Staff Retirement Plan and Trust, Section 3.03. Bargaining unit members hired after August 31, 2007, shall not be eligible for universal service credit.
Universal Service Credit. In accordance with MPSERS requirements of either Basic or MIP, each retiring employee has the option of using accumulated sick leave time to purchase Universal Service Credits up to the maximum allowed at the accumulated leave time payout rate. The retiring employee shall initiate the tax deferred purchase process with MPSERS. Upon approval of the application by MPSERS, and pursuant to IRS guidelines, the District will pay the accumulated leave money at the time the retiring employee receives his or her last pay. The amount may be set up as a payroll deduction and forwarded to MPSERS to facilitate this purchase. Accumulated leave time shall end upon termination of employment except when a leave of absence is granted by the Board under the Leave of absence provision of this Agreement. The payment for accumulated leave days or vacation days if applicable will be placed in a special pay plan 401(a) account if the dollar value of the payment is $500.00 or more. The account is subject to IRS contribution amount limits. The plan will be under the employees name and social security number. The employee may request from the authorized company a distribution in cash or self-direct the investment of their money. If the dollar value for accumulated leave days and/or vacation days, if applicable, is less than or equal to $499.99, the employee shall receive the payment via the normal payroll process and subject to withholding of all applicable taxes. For employees who are under age 55 at the time of retirement, and who, prior to their retirement, notify payroll in writing that they will be withdrawing their funds in cash and have received the cash distribution from Valic or other District selected sponsor special pay plan 401(a) account within 90 days of their retirement, the district will provide on a payroll check an additional amount equal to the difference between the tax penalty and the FICA savings.
